Fortescue and Enel Green Power partner for Latin American and Australian hydrogen value chain
Australian renewable green energy developer Fortescue Future Industries (FFI) and Enel’s global renewables arm Enel Green Power S.p.A. (EGP), have announced they will partner together to explore co-development of the green hydrogen value chain with an initial focus on Latin America and Australia
Fortescue Future Industries and Enel Green Power share a common view on the key role of green hydrogen to decarbonize hard-to-abate sectors such as fertilizers, other chemicals, steel manufacturing, shipping and aviation, where hydrogen is used as a feedstock or to generate high-temperature heat, and where the abatement of CO2 emissions through electrification is not possible or is more complex. The companies, also through this collaboration, aim to make green hydrogen cost-competitive with fossil fuel-based alternatives during this decade.
The collaboration intends to establish a framework for FFI and EGP to identify and assess possible green hydrogen/ammonia projects. Green hydrogen is a practical and implementable solution that can help revolutionize the energy sector: helping to decarbonize heavy industry and to create jobs globally.
Ammonia, which is a hydrogen-based compound, can be used to ship and store hydrogen more effectively, reducing required volumes. It is one of the most common chemical feedstocks used to produce fertilizers. Green ammonia can be used to decarbonize the fertilizer and shipping industries.
CEO of Enel Green Power, Salvatore Bernabei, said: “We strongly believe that in the near future green hydrogen can play a strategic role in the decarbonization of global energy systems, complementing direct electrification. This collaboration with a partner such as FFI fully fits within Enel’s hydrogen strategy to reduce the green hydrogen production cost, through the scale-up of technology and through innovative solutions.”
CEO of FFI, Mr. Mark Hutchinson, said: “This exciting announcement comes at a critical moment in energy. As winter approaches, and energy costs continue to skyrocket, competitive green energy costs have never been more needed. Green hydrogen and green ammonia are part of the solution for not only energy security and lower energy costs, but also for fighting climate change. With a strong proven record and dedication in green energy, Enel is the perfect partner to work with to make a green future a reality.”
The partnership marks an important milestone for the two partners as they look to bring even more large-scale production sites of green hydrogen and green ammonia to Latin America, as well as to Australia.